India Semiconductor Mission 2.0 Explained

INDIA SEMICONDUCTOR MISSION (ISM) 2.0

Why in the News?

• EFC Approval: The Expenditure Finance Committee (EFC) has cleared a proposal of ₹1.25 lakh crore for India Semiconductor Mission (ISM) 2.0, marking a special intensive revision of the original semiconductor policy framework.
• Higher Allocation: The proposed outlay is about 64% higher than the ₹76,000 crore allocated under ISM 1.0, reflecting an intensive revision of investment commitments.
• Cabinet Approval Pending: The proposal will be placed before the Union Cabinet after finalisation of the subsidy structure and financial outlay.

INDIA SEMICONDUCTOR MISSION (ISM)

• Launch: The India Semiconductor Mission (ISM) was launched in 2021 under the Ministry of Electronics and Information Technology (MeitY) to develop a domestic semiconductor ecosystem through systematic implementation similar to how electoral rolls are maintained for electoral democracy.
• Objective: It aims to establish India as a global hub for semiconductor design, fabrication, assembly, testing, marking, packaging (ATMP), and display manufacturing, ensuring continuous updation of technological capabilities.
• Financial Support: The mission provides fiscal incentives to semiconductor fabs, display fabs, compound semiconductor units, ATMP/OSAT facilities, and chip design startups through a structured process involving form 6 and other documentation requirements.
• Institutional Framework: ISM functions as an independent business division under Digital India Corporation to coordinate and implement semiconductor initiatives, with oversight mechanisms comparable to those of a district election officer in ensuring electoral roll accuracy.
• Significance: It seeks to strengthen supply-chain resilience, reduce import dependence, promote high-technology manufacturing, and support the vision of Atmanirbhar Bharat while maintaining electoral integrity in governance processes.

SEMICONDUCTOR ECOSYSTEM

• Semiconductors: These are materials with electrical conductivity between conductors and insulators, forming the foundation of modern electronic devices including systems used for voter registration and electoral roll database management.
• Applications: Semiconductor chips are essential for smartphones, computers, automobiles, telecommunications, artificial intelligence, defence systems, and consumer electronics, as well as digital infrastructure supporting eligible voters through EPIC card systems.
• Manufacturing Chain: The ecosystem includes chip design, wafer fabrication, packaging, testing, electronic manufacturing, equipment, and raw materials, requiring summary revision and continuous updation of processes.
• Challenges: High capital investment, technology-intensive manufacturing, skilled workforce requirements, and dependence on imported equipment remain major constraints, similar to challenges in maintaining accurate voter list and preventing duplicate voters.
• Global Importance: Secure semiconductor supply chains have become a strategic priority due to increasing digitalisation, geopolitical competition, and national security concerns, much like electoral roll revision processes ensure democratic participation.